Meet the overnight billionaire: Radhakishan Damani

Just few days that the Forbes' list of Billionaires is out, we have a significant mark maker to the list of richest people on the planet. Almost every business page is talking about this person who has become a billionaire overnight through stock market.

Radhakishan Damani is making the news on significant uplift in his net worth owing to the listing of shares of Avenue Supermarts on Bombay Stock Exchange at a premium of 102.14%.

Damani and his family owned a large corpus of shares in Avenue Supermarts' which is the promoter Company of D Mart, a supermarket/ retail chain having operations in South and West India. Reports said that the shareholders of Avenue Supermarts will benefit only if the recent issue brought by the latter is subscribed at a premium of at least 50%. In addition to the said minimum, the Company debuted on the Bombay Stock Exchange at a premium of more than 102 percent leading to overnight growth of the value of shares held by Damani and his net worth valuing to a staggering 6 billion dollars which is above many major business tycoons of India and the world.

Before becoming an entrepreneur and applying business sense at D Mart, Damani has been a strategic investor often seen alike to investor billionaire Warren Buffet.

Not going much into details , following are the key takeaways from the success of Mr. Radhakishan, D Mart and Avenue Supermarkets:

Slow and steady business

Damani at D Mart is seen to have valued quality rather than quantity making the supermarket one of the retailers having constant profit at increasing rates year by year unlike other big competitors in market who have their stores spread across the country unlike the case of D Mart which is concentrated only in South and west.

Emphasis on relationship building

One of the factors leading to enormous success of D Mart has been the way the stakeholders were valued at D Mart. Damani ensured the local supplies were paid in cash or quick credit clearances to develop interest among suppliers to deal with him. Similarly, developing interest of suppliers had him regular supplies and more satisfied customers.

Keeping low

The strict business sense as portrayed by Damani includes complete focus and playing on value creation for customers rather than giant marketing techniques which might bring temporary success. He created value in the form of highly discounted though limited products achieved through supplier satisfaction, offered at D Mart which ensure the customers keep coming back.

Quick Facts:

-D Mart has a 16 years of standing at over a hundred stores with all the store locations strategically self owned to prevent rising rentals with growth of business. 

-Avenue Supermarts has reported 40.4 per cent growth in revenues over the past five years at last reported consolidated earnings of around 50 million USD.

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